LFUCG Code Chapter 13 establishes a living wage applicable to LFUCG service contractors above a threshold. Hotels with LFUCG service contracts must pay covered employees the published living wage rate, adjusted periodically by ordinance.
Lexington's Living Wage Ordinance, codified in LFUCG Code Chapter 13, requires contractors providing services to LFUCG above a dollar threshold to pay covered employees a living wage exceeding Kentucky's $7.25 minimum. The ordinance applies narrowly to LFUCG service contracts rather than the private hospitality sector broadly, because Kentucky Supreme Court's 2016 Holland v. Louisville-Jefferson County ruling struck local minimum wage hikes for private employers under KRS §337.275 preemption. Hotel operators bidding on LFUCG convention or facility contracts must verify wage compliance.
Contractors failing to pay the living wage face contract termination, debarment from future LFUCG bidding, and back-wage liability to affected employees.
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